Suppose the current equilibrium for gallon of milk

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Suppose the current equilibrium for a gallon of milk is $4.00. the milk trade association starts a new advertising campaign that includes a well-received ad during the super bowl causing the equilibrium price to increase to $4.50. But the federal gov. decides to establish a price ceiling of $5.00 to limit the increasing price of milk. graphically depict these changes using a supply and demand model. what is the market outcome? is the price ceiling effective?

Reference no: EM131242379

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